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Olympia Snowe firm on extending tax cuts

The senator tells POLITICO it's a 'mistake to draw a line in the sand at $250,000.' | Photo by John Shinkle
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However, the soft-spoken Snowe sees Obama’s bombast as proof that the administration has abandoned its initial commitment to bipartisanship.

The three-term moderate Republican, keeper of the consensus-seeking flame of her predecessor, former Senate Majority Leader George Mitchell (D-Maine), said the Obama administration has “most certainly” contributed to the acid tone in Washington — by failing to include Republicans in the early stages of policy planning on the stimulus.

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Snowe, who has enjoyed an open line of communication with Obama and outgoing chief of staff Rahm Emanuel, said she advised the president early in his term to adopt the “Reagan approach” of convening a bipartisan congressional delegation at the beginning of major legislative initiatives.

Obama “appreciated it, [but] obviously, probably had different views,” she added with a smile.

Instead, the administration has “diminished in terms of outreach,” Snowe said, in an era of near-10 percent unemployment and partisan vitriol.

“The longevity of this recession ... did require, I think, a different kind of leadership in terms of that outreach, and it would have made the country better. It would have united the country rather than dividing the country,” she said.

Still, Snowe has warm feelings toward Obama — and even the hard-edged Emanuel, who speed-dialed Snowe relentlessly during the spring in a fruitless attempt to get her vote on health reform.

“I’ve had a good relationship with Rahm,” she said. “He’s straightforward. ... I wish him well if he chooses to run for mayor of Chicago.”

And she doesn’t spare Republicans, saying GOP leadership “probably ... could have been part of that process in figuring out a way.”

However, she quickly added, “The president of the United States is the president of the United States. He’s one person. Invite them. Sit them down in a Cabinet room. Have that conversation.”

Administration officials have painted a different picture of recent history — blaming McConnell for quarterbacking a strategy of obstruction and exerting withering peer pressure on pragmatic centrists such as Snowe.

McConnell never said, “don’t have those discussions” with Obama on the stimulus, Snowe said, adding, “I was doing my job as a member of the Senate. I’m certainly cognizant of where — what the minority leader would suggest, you know, or what his position is on behalf of the conference for most of the Republicans. I thought it was my responsibility to do the best I could on a piece of legislation that I thought, you know, was compelling.”

Like almost every GOP incumbent, Snowe faces the possibility of a tea party challenge from the right when she runs for reelection in 2012. But she said she’s unconcerned about the peer pressure, particularly when she surveys the deterioration of Maine’s economy, which is dependent on the volatile forestry and manufacturing sectors.

“There’s a real fear about what other policies that will be, you know, coming out of Washington at a time in which they’re struggling to survive,” Snowe said.

The clain that people making over $250K are small business owners is impossible to verify. It may sound plausible. But, on reflection it is unlikely that any small business owners have a cash cow that generates excess cash flow in such a large amount. Small business owners generally plow money back into their business in order to grow their business and stay ahead of competition. Taxes are assessed on net income (EBIT), so a small business owner would not even owe any tax if he plowed income back into his business every year. More likely: those earning over $250K are Wall Street types with stock options that vest annually and require taxes to be withheld at the time of option exercise. Why should we be borrowing money from China to pay for tax cuts to those people?

My memory may be failing me, but isn't she the one who insisted on a date to terminate the Bush tax cuts? Isn't that how that happened? I could be wrong, but she represents my home state and I was disgusted with her at the time. Now she's changed her tune if what I think I remember is true.

Plain and simple, when she detects the slightest bit of weakness in Obama's polling numbers, she bails. When he's strong, she's a RINO. As the lines in the sand continue to be drawn, moderate politicans are being squeezed out. Bottom line: the status quo pretty much continues its win streak. I suspect that what little of Obama's legislative accomplishments remain will be overturned after the midterms. He ran as a liberal, then governs as a moderate. Bush ran as a conservative and governed as a conservative. Bush was elected twice. End of story.

The vast majority of small businesses are legally structured as Subchapter S corporations and limited liability companies, which are so-called "pass-through entities" for federal income tax purposes. That means that the income of the business entity is not taxed separately from the income of its owner(s).

Gentlemen of the Right, we can quibble about Olympia Snowe's moderate voting history, but she's got this one right. Raising income taxes on small businesses and small business owners during a recession and stunted recovery is just plain nuts. Snowe gets it, Obama doesn't. Kudos to her.

I think watching RINOS and DINOS going down in their primaries has put the fear of God in everyone. That and watching how Obambi's liberal policies have failed to turn around the economy are what is driving the moderates' "Come to Jesus" moment.

As the slow drip drip of the unintended consequences of Obamacare care slowly seep out over the next two years, healthcare will become to Obambi what Iraq was to Bush except that Bush ultimately succeeded in Iraq, Obambi's new entitltement program will not.

"The Obama administration rejects that argument — and Hill liberals are urging him not to budge. Allowing the upper-end cuts to expire wouldn’t cost jobs, they say, and would free up billions in investment capital by slashing the long-term deficit by more than $700 billion over the next 10 years."

What planet are these people on? Increasing taxes on business owners and increasing government spending does not spur investment. And, no, government spending on healthcare, entitlements and higher union wages does NOT constitute invesment. Those are increaed government expenditure that create the need for higher taxes and reduce private sector growth and job creation.

The Obama Administration really is a more moderate form of Hugo Chavez's Bolivarian socialism, and equally ignorant of baisc economics.

Revenge---You've got it right. I believe very, very few of Obama's bozos have any real world business experience. And why do they think they deserve to have more of the taxpayers money just because the deficit is so high? We tried to tell them not to spend our money over and over again and now they want more? They ALL need some real world experience and standing in the unemployment line is a great place to start!

Senator Snowe to the middle classs / poor people of ME: "ME Worry?...I'm RICH Beeyoch... I only care about ME myself and I"

Only a republican can argue that giving OBSCENE tax cuts to 2% of the people is worth SACRIFICING the other 98%

Can you imagine if your doctor was a republican? and he told you that to save your PINKY finger you had to sacrifice the rest of your body?... you know, your brain, your heart, kidneys, lungs, legs, arms, hands (minus 1 pinky) nose, eyes, ears... so long as we save your pinky you will be fine... INSANE !

"Republican Sen. Olympia Snowe — a likely swing vote in the Bush tax cut battle — flatly rejects President Barack Obama’s call to extend breaks for taxpayers earning less than $250,000 and says she won’t vote for any bill killing tax breaks for the wealthy."

Politico, I would never vote for Snowe or Collins, but, I will strongly defend their rights to have their stances correctly stated. Now, their stances sometimes change from hour to hour, but, even the rest of the article correctly states that Snowe has said that she wants ALL tax cuts extended, contrary to your opening paragraph, which says she rejects the idea of extending tax breaks for $250,000 and below. I must wonder if this was intentional, or, perhaps it is another example of the pitiful U.S. educational system, which doesn't need more money, but, rather should be given more authority to discipline. Given Politico's left leaning proclivities, I tend to think that it was intentional, hoping people would read no further. Politico, you should give your readers more credit--not all of us are stupid.

The GOP right-wingers managed to frighten and bully the last remaining Republican moderate senator in Congress. At least, they dropped the pretention and made it unanimous, they all are the party by and for the rich.

I don't know what the "conservative" is in her position. The "small business" owner making more than $250,000 is few and far between. That's the only rationalization they have to stand on. The real reason for wanting to extend the tax cuts to the rich is to give more to the rich! Hmmm. That's a pretty standard Republican, but not necessarily "Conservative" position. Just more of the same. I'm disgusted.